Agreement Extends Cash Runway into 2019
SAN JOSE, Calif., May 11, 2018 (GLOBE NEWSWIRE) — Restoration Robotics, Inc. (NASDAQ:HAIR), a leader in robotic hair restoration, announced today that it has reached an agreement with Solar Capital Ltd. and the Life Sciences Group at Bridge Bank to secure a debt facility agreement for $20.0 million.
The agreement provides the Company with $20.0 million, of which approximately $10.7 million was used to repay outstanding amounts under the Company’s previous loan facility and pay costs and expenses related to the new debt facility. The remaining $9.3 million provides the Company with additional cash and extends its cash runway into 2019. Additionally, the new debt facility provides for interest-only payments for the first 18 months.
Mark Hair, Chief Financial Officer, commented, “We are pleased to announce this agreement, which increases our financial flexibility as we expand our commercial footprint, prepare for the implantation functionality launch and consider further strengthening our balance sheet in the medium term. We appreciate our relationship with our lenders and their confidence in our ability to execute on our near and long term corporate initiatives.”
Armentum Partners acted as financial advisor to Restoration Robotics for the debt transaction.
About Restoration Robotics
Restoration Robotics, Inc., is a medical device company developing and commercializing the ARTAS™ Robotic Hair Restoration System. We believe the ARTAS System is the first and only physician-assisted system to dissect, and assist in the harvesting of, follicular units directly from the scalp and create recipient implant sites using proprietary algorithms. The Company has unique expertise in machine vision, image guidance, visual servoing and robotics, as well as developing intuitive interfaces to manage these technologies.
About Solar Capital Ltd.
Solar Capital Partners (“SCP”) is the registered investment advisor to Solar Capital Ltd. (NASDAQ:SLRC), Solar Senior Limited Ltd.(NASDAQ:SUNS) and other affiliated funds. SCP is focused on providing financing solutions to leveraged U.S. private middle market companies primarily in the form of cash flow senior secured loans and asset-based loans. Since inception in 2006, the SCP platform has invested over $8.0 billion in more than 500 portfolio companies and has completed transactions with more than 150 different financial sponsor and venture capital firms. SCP’s life science lending platform provides financing solutions primarily for bio‐pharma and medical device companies, both venture‐backed private and public, and from pre-revenue clinical to early commercial stage.
About Bridge Bank
Bridge Bank is a division of Western Alliance Bank, Member FDIC, the go-to-bank for business in its growing markets. Bridge Bank was founded in 2001 in Silicon Valley to offer a better way to bank for small-market and middle-market businesses across many industries, as well as emerging technology companies and the private equity community. Geared to serving both venture-backed and non-venture-backed companies, Bridge Bank offers a broad scope of financial solutions including growth capital, equipment and working capital credit facilities, sustainable energy project finance, venture debt, treasury management, asset-based lending, SBA and commercial real estate loans, ESOP finance and a full line of international products and services. Based in San Jose, Bridge Bank has eight offices in major markets across the country along with Western Alliance Bank’s robust national platform of specialized financial services. Western Alliance Bank is the primary subsidiary of Phoenix-based Western Alliance Bancorporation. One of the country’s top-performing banking companies, Western Alliance ranks #2 on the Forbes 2018 “Best Banks in America” list. For more information, visit bridgebank.com.
Statements made in this press release and the earnings call referencing the press release that are not statements of historical fact are forward-looking statements. Forward-looking statements are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements, including our expectations as to our cash runway as a result of our new credit facility and timing and expectations for the launch of implantation functionality, are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: whether there is growth in demand for our ARTAS System for use in harvesting hair follicles for transplant; the progress of our commercialization, marketing and manufacturing capabilities; the continuing productivity and effectiveness of our commercial infrastructure and salesforce; our financial performance; our ability to establish collaborations and/or partnerships; the timing or likelihood of regulatory filings and approvals for ARTAS for use in transplanting of hair follicles, and expanding the approved use of ARTAS for use in dissecting hair follicles to include women and individuals without straight brown or black hair; our expectations regarding the potential market size and the size of the patient populations for ARTAS being accurate; whether we are effective in the pricing of ARTAS; whether we are successful in the implementation of our business model and strategic plans for our business and technology; the scope of protection we are able to establish and maintain for intellectual property rights covering ARTAS, along with any product enhancements; our ability to accurately estimate our expenses, future revenue, capital requirements, our needs for additional financing and our ability to obtain additional capital; and developments relating to our competitors and our industry, including competing therapies and procedures. These factors, together with those that are described in greater detail in our Annual Report on Form 10-K filed on March 5, 2018, as well as any reports that we may file with the SEC in the future, may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements. We expressly disclaim any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements.
Director of Marketing
Restoration Robotics, Inc.
The Ruth Group
Lee Roth & Brian Johnston